Analyzing KUKA Aktiengesellschaft (OTCMKTS:KUKAY) & Kadant (NYSE:KAI)

KUKA Aktiengesellschaft (OTCMKTS:KUKAY) and Kadant (NYSE:KAI) are both mid-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.

Risk & Volatility

KUKA Aktiengesellschaft has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Kadant has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Institutional and Insider Ownership

96.1% of Kadant shares are held by institutional investors. 1.3% of Kadant shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares KUKA Aktiengesellschaft and Kadant’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KUKA Aktiengesellschaft	1.18%	2.87%	1.06%
Kadant	9.52%	13.16%	7.67%

Dividends

KUKA Aktiengesellschaft pays an annual dividend of $0.06 per share and has a dividend yield of 0.1%. Kadant pays an annual dividend of $1.44 per share and has a dividend yield of 0.5%. Kadant pays out 15.5% of its earnings in the form of a dividend. Kadant has increased its dividend for 12 consecutive years. Kadant is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current recommendations for KUKA Aktiengesellschaft and Kadant, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KUKA Aktiengesellschaft	0	0	0	0	0.00
Kadant	0	3	1	0	2.25

Kadant has a consensus target price of $357.50, indicating a potential upside of 18.15%. Given Kadant’s stronger consensus rating and higher probable upside, analysts plainly believe Kadant is more favorable than KUKA Aktiengesellschaft.

Valuation and Earnings

This table compares KUKA Aktiengesellschaft and Kadant”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KUKA Aktiengesellschaft	$3.89 billion	0.80	-$46.14 million	N/A	N/A
Kadant	$1.05 billion	3.40	$101.97 million	$9.30	32.53

Kadant has lower revenue, but higher earnings than KUKA Aktiengesellschaft.

Summary

Kadant beats KUKA Aktiengesellschaft on 13 of the 15 factors compared between the two stocks.

About KUKA Aktiengesellschaft

KUKA Aktiengesellschaft, an automation company, provides robot-based automation solutions worldwide. It operates through five segments: Systems, Robotics, Swisslog, Swisslog Healthcare, and China. The company manufactures and supplies industrial, collaborative, and mobile robots, as well as robot controllers, software, and digital services for industrial Internet of Things. It also offers automated guided vehicles and other automation components to production cells, turnkey systems, and networked production with the aid of cloud-based IT tools; individual system components, tools and fixtures, and automated production cells; and robot-based and modular manufacturing cells, as well as support services. In addition, the company offers automated solutions for hospitals, warehouses, and distribution centers; and warehouse management systems and healthcare systems. It serves customers in the automotive, electronics, e-commerce/retail, consumer goods, metal and plastic, healthcare, and other industries. The company was formerly known as Industrie-Werke Karlsruhe Augsburg Aktiengesellschaft and changed its name to KUKA Aktiengesellschaft in 2007. The company was founded in 1898 and is headquartered in Augsburg, Germany. KUKA Aktiengesellschaft is a subsidiary of Midea Electric Netherlands (I) B.V.

About Kadant

Kadant Inc. supplies technologies and engineered systems worldwide. It operates in three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems and equipment, such as rotary joints, syphons, turbulator bars, expansion joints, and engineered steam and condensate systems; and doctoring, cleaning, and filtration systems and related consumables consisting of doctor systems and holders, doctor blades, cleaning shower and fabric-conditioning systems, forming systems and wear surfaces, and water-filtration systems. The Industrial Processing segment develops, manufactures, and markets ring and rotary debarkers, stranders, chippers, engineered knife systems, industrial automation and control, recycling and approach flow systems, and virgin pulping process equipment for use in the packaging, tissue, wood products, and alternative fuel industries. The Material Handling segment offers conveying and vibratory equipment, and baling products; and manufactures and sells biodegradable absorbent granules for carriers in agricultural, home lawn and garden, professional lawn, turf, and ornamental applications, as well as for oil and grease absorption. The company markets and sells its products, services, and systems through direct sales, independent sales agents, and distributors. The company was formerly known as Thermo Fibertek, Inc. and changed its name to Kadant Inc. in July 2001. Kadant Inc. was incorporated in 1991 and is headquartered in Westford, Massachusetts.